(Adopted at the 62nd Executive Meeting of the State Council on September 1, 2004, promulgated by Decree No.420 of the State Council of the People’s Republic of China on September 19, 2004, and effective as of November 1,2004.)

Article 25 Whoever imports or exports goods which constitute infringement on the intellectual property rights under protection by laws and administrative regulations of the People’s Republic of China, the infringing goods shall be confiscated and a fine of not more than 30% of the goods value shall be imposed thereof; where the infringement constitutes a crime, the person or persons concerned shall be investigated for criminal liability according to law.

Where the importer of import goods or the exporter of export goods or his agent fails to declare the intellectual property right status according to laws and regulations accurately, or fails to submit the evidentiary documents of exercising the intellectual property rights lawfully, a fine of not more than RMB50,000 Yuan may be imposed.